Why is crypto down today? – January 23, 2026
Journalist
Sead Fadilpašić
Journalist
Share
After a few jumps, the crypto market is down today. The cryptocurrency market capitalization fell by 2.2% in the last 24 hours, back to $3.11 trillion. As of this writing, 70 of the top 100 coins have fallen in value. Total crypto trading volume has reached $110 billion.
TLDR: Crypto market price down 2.2% on Friday morning (UTC); 70 out of 100 coins and 8 out of 10 coins are down. BTC fell by 0.4% to $89,477 and ETH by 2% to $2,945; Geopolitical instability may leave BTC oscillating between its safe-haven narrative and its role as a high-beta risk asset. Ukraine-Russia talks may help ease markets' tail-risk fears, but for the time being; BTC's outlook is driven by macro factors and actual capital flows; BTC is no longer trading in a bullish state; ‘The most plausible scenario in the near term is for Bitcoin to continue to cautiously consolidate'; The US SEC and CFTC chairmen will hold a crypto-focused joint event on January 27. Ledger is reportedly planning a US IPO that could value it at more than $4 billion. US BTC and ETH spot ETFs saw outflows of $32.11 million and $41.98 million respectively, with crypto market sentiment unchanged in the fear zone.
Crypto winners and losers
As of Friday morning (UTC), 8 of the top 10 coins by market capitalization had fallen in value in the last 24 hours.
Bitcoin (BTC) is down 0.4%, currently trading at $89,477. This is the smallest drop in the list,
Ethereum (ETH) fell by 2%, changing hands at $2,945. This is the second-highest drop in the category.
The biggest faller among the top 10 is XRP's 2.2%, now at $1.91.
On the other hand, two coins are currently green. Tron (TRX) appreciated by 3.3% to $0.309.
Binance Coin (BNB) is technically also green, but the increase is so low that the price has practically not changed. It ranges from 0.1% to $890.
Similarly, among the top 100 coins by market capitalization, 70 are down in value today.
Pump.fun (PUMP) fell the most among them: 6.4% to $0.002481.
Next, Provence Blockchain (HASH) fell 4.2% to $0.0242.
On the green side, Rain (RAIN) appreciated the most: 8.4% to $0.00997.
River (River) is next, up 7.4% to $49.83.
Meanwhile, in the US, SEC Chairman Paul Atkins and CFTC Chairman Michael Selig will hold a joint event on January 27 to discuss regulatory uncertainty and efforts to make the United States the global crypto capital.
“For a long time, market participants have been forced to navigate regulatory boundaries that are unclear in implementation and flawed in design, based solely on legacy legal silos,” the chairman said in a statement.
How will Ukraine-Russia talks affect markets?
According to Bitunix analysts, the recent developments surrounding the war in Russia and Ukraine may be beneficial for the markets, but only in the short term. The US will facilitate talks between Ukraine and Russia in Abu Dhabi today.
At the macro level, analysts say, “this initiative may ease the risk of a full-blown tailspin in the near term, but it doesn't mean the conflict will end quickly.” A limited ceasefire may be more realistic.
In addition, geopolitical risk premia can be reduced in the short term, supporting risk assets and reducing the volatility of energy prices.
However, the symbolism of these conversations may outweigh any immediate findings. In the medium term, “markets need to see a realistic scope for Russian concessions, without which, sentiments can swing back and forth.”
For crypto markets, “geopolitical instability is ‘freezing but not thawing', causing Bitcoin to oscillate between its safe-haven narrative and its role as a high-beta risk asset.”
BTC is no longer in Euphoria.
Linh Tran, senior market analyst at XS.com, commented that Bitcoin's short-term outlook is focused on interest rates, liquidity and institutional capital flows.
“After the high volatility seen at the end of 2025, BTC is not trading in a euphoric state, but rather reflects global investors' cautious high volume and still meaningfully volatile financial conditions,” Tran wrote.
One of the most important factors affecting BTC is the level of US Treasury yields. Unless markets begin to believe that the monetary policy cycle is approaching a turning point, BTC will struggle to attract sustained new inflows.
Meanwhile, the US Federal Reserve is likely to take a cautious stance at its meeting in late January. Therefore, “only strong enough economic data to change expectations around the exchange rate can create meaningful volatility in BTC, otherwise the market can remain locked in a war,” the analysts argue.
Still, they say institutional flows are the most critical to BTC's near-term outlook. “Bitcoin will only end sustainable growth when ETF flows remain consistently positive rather than sporadic flows that quickly reverse.”
Moreover, deep buying demand is not enough to push prices through key resistance levels. Therefore, “without the support of fresh earnings, every recovery risks turning into a profit-making opportunity, where the short-term trend is bleak and lacks clear direction.
“From my point of view, the most convincing scenario in the near term is for Bitcoin to continue to strengthen cautiously, which will continue to be a negative risk if the flow of ETFs continues. To create a more constructive situation, the market must improve simultaneously on two fronts: the easing of financial conditions and the return of constant institutional buying.”
On the contrary, Tan says, “if the commodity or global markets move significantly to a defensive and risk-free stance, bitcoin may face renewed bearish pressure in the short term given its high exposure to changes in risk appetite.”
The following stages and events
At the time of writing on Friday morning, BTC was changing hands at $89,477. It was a very interesting trading day for the coin. The coin first and briefly rose to a high of $90,159 before falling to the day's low of $88,557. Trading continued in this region.
Over the past 7 days, BTC is down about 7%, trading in the $87,653–$95,649 range.
We have now found the support at $89,300, then at the $87,400 level. The latter was previously used as a wish. On the other hand, resistance levels stand at $91,800 and $94,200.
At the same time, Ethereum was trading at $2,945. A similarly tumultuous trading day ensued. Earlier in the day, it fell from $3,012 to an intraday low of $2,909. For most of the day, it traded in the $2,944-$2,953 range.
Moreover, ETH has decreased by 11.3% in the last seven days, moving between $2,898 and $3,361.
If the downward push continues, the price may drop further below $2,900, then at $2,830 and $2,745. If the tide turns, ETH could retake the $3,000 level, and if it can hold on to it, the move could open the door for further significant gains.
Meanwhile, the sentiment of the crypto market has not changed in the past day, it firmly maintains its position in the fear zone.
The Crypto Fear and Greed Index stands at 34 today, the same as yesterday.
This highlights the general uncertainty and caution in the market, as participants wait to see which direction the needle will go.
ETFs see the biggest drop in two months
US BTC spot exchange-traded funds (ETFs) posted the smallest outflows on January 22, totaling $32.11 million. This is the lowest flow rate in a month. Total net income now stands at $56.6 billion.
Only two of the twelve EFAs recorded outflows, and none saw inflows.
BlackRock posted $22.35 million, and Fidelity followed with $9.76 million in spending.
Additionally, US ETH ETFs posted a small negative inflow as well at $41.98 million. Like their BTC counterparts, this is the lowest amount since late December. As a result, total net income rose to $12.34 billion for the third day in a row.
Of the nine funds, two ETH ETFs posted outflows, and two saw outflows. Grayscale took a total of 17.63 million.
At the same time, BlackRock recorded $44.44 million in outflows, followed by Bitwise's $15.16 million.
Meanwhile, major French hardware wallet maker Ledger is reportedly planning a US initial public offering (IPO) that could value the company at more than $4 billion.
It does so in partnership with Wall Street banks Goldman Sachs, Jefferies and Barclays.
Quick FAQ
Did crypto move with stocks today?
After a day of gains, the crypto market has returned to the downward trend that led this week. Meanwhile, the US stock market closed Thursday's session higher for the second day in a row. At the close on January 22, the S&P 500 was up 0.55%, the Nasdaq-100 was up 0.76%, and the Dow Jones Industrial Average was up 0.63%. Perhaps, TradFi markers are still digesting the US's clear decision not to use military force in Greenland or impose tariffs on eight NATO allies.
Is this drop permanent?
For now, we may continue to see further declines in the crypto market, at least in the short term. Nevertheless, the price action is not closed for a renewed uptrend, although it is still unclear how stable it will be.
Trending news, recommended popular crypto topics, price predictions
